Business Development 2021

Deloitte Malta Tax Alert

28 January 2021

The Malta Enterprise Corporation has issued the Incentive Guidelines (the ‘Guidelines’) on the Business Development 2021 scheme (the ‘Scheme’). The Scheme is available until 31 December 2023.

What does it support?

The Scheme supports eligible undertakings with up to €200,000 in tax credits or cash grants for projects aimed at expanding and transforming their business operation or to consolidate their current activities and reengineer their business processes.

What are the eligible expenses?

Eligible expenses include:

  • Relocation costs of key personnel;
  • Payroll costs;
  • Lease and rental of real estate;
  • Support and advisory services;
  • Costs in connection with the acquisition of licenses for the use of knowhow, software and other intangible assets and certifications support;
  • Relocation expenses in relation to tangible assets;
  • Costs for the procurement of tangible assets.

Who is eligible?

The Scheme is open to most businesses pursuing activities which will lead to increased business performance and innovation. Specific importance is given to activities relating to:

  • Manufacturing;
  • Management of waste and environmental solutions;
  • Research and development activities;
  • Provision of industrial services and solutions to manufacturing operations;
  • Digitisation of processes;
  • Development of digital service and systems (including video games and entertainment systems) intended for international markets;
  • Maintenance, repair and overhaul of aircraft and other electromechanically equipment;
  • Artisanal works;
  • Services that by nature are not limited to geographic scope and are scalable internationally.

The Scheme is also applicable for projects submitted by business associations that lead to solutions of common benefit to all undertakings engaged in a specific sector or sectors.

How can we help?

Deloitte Malta can assist in answering your queries, so please do not hesitate to reach out to us for any further guidance you may require.

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